Comments
The Thoothukudi (Tamil Nadu)-based Tamilnad Mercantile Bank Ltd, has received market regulator SEBI’s approval to raise funds through an initial public offering (IPO).
The proposed IPO comprises a fresh issue of 1.582 crore shares and an offer for sale of 12,505 equity shares by D Prem Palanivel, Priya Rajan, Prabhakar Mahadeo Bobde, Narasimhan Krishnamurthy, M Malliga Rani and Subramanian Venkiteshwaran Iyer. The offer will constitute 10 per cent of the post-offer paid-up equity share capital.
The private sector lender , which filed its draft red herring prospectus with SEBI in September 2021, obtained its observations on May 30, according to an update. In SEBI’s parlance, its observation indicates approval for launching the IPO.
Plans to raise ₹1,000 crore
The bank had said that it was planning to mobilise more than ₹1,000 crore from the public issue.
It also indicated the proceeds from the IPO will be used for augmenting its Tier-I capital base.
As of March 31, 2022, the bank’s total income stood at ₹4,656 crore, up 9.48 per cent as compared to ₹4,253 crore in FY21. It posted a net profit of ₹822 crore for FY22 as compared to ₹603 crore in FY21, an increase of 36.23 per cent. The total business of the bank stood at ₹78,424.65 crore (₹72,040.02 crore).
Net NPA was at 0.95 per cent (1.98 per cent in FY21), while Gross NPA stood at 1.69 per cent (3.44 per cent).
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.